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France Telecom Teams with ZyXEL for Speedy Deployment of Nationwide School Internet Package

ZyXEL's Award-Winning Prestige 100IH Allows French Schools to Cost-Effectively Connect to the Internet

Paris, January 12, 2000 - France Telecom, one of the world's leading telecommunications carriers, and ZyXEL Communications Corporation, a leading provider of Internet access solutions in Taiwan, today announced that France Telecom DPE, educational project division, has selected ZyXEL's Prestige 100IH ISDN Router as the router of choice to optimize its School Internet Package service -- Scol@gora. throughout French schools.

Scol@gora's School Internet Package is a nationwide solution that allows schools to connect their classrooms to the Internet. The package pairs with a FSI, a special ISDN line service, and ZyXEL's award-winning Prestige 100IH ISDN routers to provide a robust, high-performance Internet service to meet the growing demands of students. The unique features of this package include call scheduling, Multi-to-Multi NAT, and IP Alias.

"We are very honored to work with France Telecom to provide this tailor-made product for French schools. This specially designed award-winning Prestige 100IH provides schools with enhanced, easy-to-use call management capabilities and high-speed Internet access with up to three network support on each Ethernet interface," said Shin-Jou Fang, the President of ZyXEL. "France Telecom has an unparalleled leading presence in France, and we are confident that this new partnership will help us to further improve the market growth rates that we have experienced in Europe during the past few years," Fang added.

About ZyXEL Communications
ZyXEL Communications Corporation, (TAI: 2391.TW) founded in Taiwan in 1989, is a leading supplier of broadband access devices, routers, ISDN terminal adapters, and modems. Products developed by ZyXEL over the years are not only industry leaders, but consistently win acclaim and are selected by worldwide telecommunications companies, ISPs, and other major businesses. ZyXEL now serves France Telecom, Bell Atlantic, Telia, Telecom Italia, Czech Telecom, Taiwan Telecom, China Telecom, Korea Telecom, Cuba Telecom and other customers in over 150 countries spanning all the seven continents. For more information about ZyXEL and its solutions, visit http://www.zyxel.com.

About France Telecom
France Telecom (http://www.francetelecom.fr) is one of the world's leading telecommunications carriers, with 1998 consolidated operating revenues of 24.6 billion euros and operations in more than 50 countries. France Telecom provides businesses, consumers and other carriers with a complete portfolio of solutions that spans local, long-distance and international telephony, data, wireless, multimedia, Internet, cable TV, broadcast and value-added services. France Telecom held an initial public offering in October 1997 and is listed on the Paris and New York stock exchanges.